“Apple Inc has another headache in China: this time with its latest watch,” The Wall Street Journal reports. “For the first time, the Apple Watch can have an independent cellular connection, allowing people to use it to make voice calls, send and receive text and data even if the watch isn’t wirelessly connected to an iPhone. But in China, the feature was abruptly cut off for new subscribers, without explanation, after a brief availability with one telecom company.”

“Industry analysts say the suspension likely stemmed from Chinese government security concerns to do with tracking users of the device, which uses different technology than standard mobile phone,” WSJ reports. “China strictly regulates mobile phones and all three major telecom service providers are state-owned companies. To get a SIM—subscriber identity module—card to operate the phone, users must register under their real names with a network carrier.”

“The latest Apple Watch poses a challenge to the existing user identification system, industry analysts said. The watch contains a new and tiny version of the SIM card, called embedded SIM, or eSIM. The eSIM is embedded in the watch by Apple, not by carriers,” WSJ reports. “The benefit of a device carrying an eSIM is that, with software, users can choose a telecom operator and a communications plan. But in China, that new system raises the question of how carriers and regulators can track the device user’s identity.
‘The eSIM (system) isn’t mature enough yet in China,” one analyst said. “The government still needs to figure out how they can control the eSIM.'”

“‘We were informed by China Unicom that the new cellular feature on the Apple Watch Series 3 has been suspended,’ Apple said in a statement,” WSJ reports. “Ministry officials are likely studying how to resolve the issue before allowing any broad cellular access to the Apple Watch, which could take months, said the analysts, who asked not to be identified.”

This issue is being widely discussed in online sites in China. The Chinese tech press is reporting the China Unicom (联通) is reassuring customers that the Apple Watch cellular capability will be likely be formally approved after another round of testing of the eSIM.

Very difficult to anticipate anything in China, even when you think you have a Deal it can be shut off, delayed or cancelled at will as and when a different or higher entity takes an interest especially the closer it gets to Government and ther watch dogs.